Nick Clegg says reform of the electoral system is not his ‘sole purpose in life’. Photograph: Reuters Nick Clegg today risked the anger of the Liberal Democrat grassroots by suggesting he would not abandon the coalition with the Tories even if the key plans for electoral reform... 

In a letter leaked to the Guardian, Theresa May warned George Osborne days before his emergency budget that cuts could widen inequality. Photograph: Anthony Devlin/PA Theresa May, the home secretary and equalities minister, warned the chancellor that cuts in the budget could widen inequality... 

The New York headquarters of the Goldman Sachs investment bank. Photograph: Justin Lane/EPA Goldman Sachs faces the threat of legal action from Royal Bank of Scotland, which lost $800m (£523m) on the complex mortgage security at the heart of a record-breaking fine by the US regulators. Even... 

Abdelbaset al-Megrahi sits in his wheelchair in a Tripoli hospital. It is almost a year since he was released on medical and compassionate grounds from a Scottish prison for his role in the Lockerbie bombing Photograph: Str/REUTERS The release of Lockerbie bomber Abdelbaset al-Megrahi was “wrong...